ROBERT L. EHRLICH, JR., Governor                           H.B. 234

employer exempting from a certain offset of an allowance certain retirees of the
Local Fire and Police System who are reemployed by certain employers; altering
certain requirements for the reemployment of certain retirees of the Local Fire
and Police System; and generally relating to the reemployment of retirees of the
Local Fire and Police System.

BY repealing and reenacting, with amendments,
Article - State Personnel and Pensions
Section 28-402
Annotated Code of Maryland
(1997 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Personnel and Pensions

28-402.

(a)      [Subject to subsection (b) of this section, an] AN individual who is
receiving a service retirement allowance or vested allowance may accept employment
with a participating employer on a permanent, temporary, or contractual basis,
without any reduction in the allowance, if:

(1)     the individual immediately notifies the Board of Trustees of the
individual's intention to accept the employment; and

(2)     the individual specifies the compensation to be received.

(b)     [(1) [This subsection does not apply to:

(i) an individual whose average final compensation was less than
$10,000 and who is reemployed on a temporary or contractual basis; or

(ii) an individual who is serving in an elected position as an official
of a participating governmental unit or as a constitutional officer for a county that is
a participating governmental unit] THE BOARD OF TRUSTEES SHALL REDUCE THE
ALLOWANCE OF AN INDIVIDUAL WHO ACCEPTS EMPLOYMENT AS PROVIDED UNDER
SUBSECTION (A) OF THIS SECTION IF THE INDIVIDUAL'S CURRENT EMPLOYER IS A
PARTICIPATING EMPLOYER OTHER THAN THE STATE AND IS THE SAME
PARTICIPATING EMPLOYER THAT EMPLOYED THE INDIVIDUAL AT THE TIME OF THE
INDIVIDUAL'S LAST SEPARATION FROM EMPLOYMENT WITH A PARTICIPATING
EMPLOYER BEFORE THE INDIVIDUAL COMMENCED RECEIVING A SERVICE
RETIREMENT ALLOWANCE OR VESTED ALLOWANCE.

(2)     [The Board of Trustees shall reduce an individual's allowance by]
THE REDUCTION REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL
EQUAL the amount that the sum of the individual's initial annual basic allowance and
the individual's annual compensation exceeds the average final compensation used to
compute the basic allowance.

(3)      EXCEPT FOR AN INDIVIDUAL WHOSE ALLOWANCE IS SUBJECT TO A

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